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<br />What is liability insurance and what does it cover? <br />Liability insurance covers loss or damage suffered by someone else for which you can be <br />held legally responsible. For example, if a guest slips and injures herself on your home’s <br />ice-covered steps, you could be held responsible (liable) for the injury that your guest <br />suffered. <br /> <br />Does insurance determine who is responsible for losses caused by failed trees? <br />No. A common misconception, even among insurance professionals, is that insurance <br />coverage determines liability. Responsibility for damages (liability) is determined by <br />legislatures enacting laws or by courts deciding cases. An insurance policy is simply a <br />contract to reimburse an individual for losses suffered or caused. For example, if you <br />have a tree in your yard that you know presents a hazard, you will be liable under the law <br />for damage that your tree causes when it falls on a passerby or on your neighbor’s <br />property. <br /> <br />Insurance may cover all or portions of the loss, regardless of who is responsible or liable <br />under the law. Your neighbor’s casualty insurance may pay for the damage to his <br />property caused by your tree. If the person who is hurt by the falling tree has a medical <br />insurance policy, that policy will pay for medical treatment. Since you are liable for all <br />of the damages, your liability insurance will likely cover most, if not all, of the losses. <br />Often people rely on insurance to cover their losses, without considering who is legally <br />responsible. However, there are always limitations on what insurance companies pay. If <br />you have legal liability, you will be responsible to pay what insurance does not cover. <br /> <br />What should I do if my property is damaged by my neighbor’s fallen tree, and my <br />neighbor insists that I can recover only from my own insurance company? <br />If you have questions about your liability, you should contact a lawyer and not simply <br />take the word of an insurance agent. After all, if you get sued, it will be you – not your <br />insurance agent – who has to go to court, attend depositions, take the witness stand, and <br />endure all of the stresses that accompany litigation. Courts decide disputes based on the <br />law, not on insurance coverage. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Disclaimer: The information included in this fact sheet is intended to be educational, not <br />legal advice. If you have a legal problem and require legal advice, you should consult a <br />lawyer. <br /> Insurance Coverage and Damage Caused by Trees 2